Slide 1: Tropicana Gold Mine
For personal use only TROPICANA GOLD MINE 4 August 2019
Slide 2: AGA Disclaimer
AGA DISCLAIMER For personal use only Certain statements contained in this document, other than statements of historical fact, including, without limitation, those concerning the economic outlook for the gold mining industry, expectations regarding gold prices, production, total cash costs, all-in su
Slide 3: IGO Cautionary Statements & Disclaimer
IGO CAUTIONARY STATEMENTS & DISCLAIMER For personal use only • This presentation has been prepared by Independence Group NL (“IGO”) (ABN 46 092 786 304). It should not be considered as an offer or invitation to subscribe for or purchase any securities in IGO or as an inducement to make an offer or i
Slide 4: Overview
OVERVIEW For personal use only Location: 330km east-north-east of Kalgoorlie in WA Ownership: AngloGold Ashanti Australia Ltd (70% and manager), Independence Group NL (30%) Mining: Conventional open cut and conventional mechanised underground mining methods. Processing: Crushing, high-pressure grind
Slide 5: Tropicana in Perspective: Australian gold mines 2018 production
TROPICANA IN PERSPECTIVE For personal use only Australian gold mines – calendar 2018 production 800 700 Gold production (000s oz) 600 500 400 300 200 100 0 Source: Company reports 5
Slide 6: Tropicana in Perspective: June 2019 quarter AISC
TROPICANA IN PERSPECTIVE Australian gold mines – June 2019 quarter AISC For personal use only 6
Slide 7: Agenda
AGENDA For personal use only Tropicana Journey Safety Tropicana’s History of Delivery Operational Excellence LOM Decisions Exploration 7
Slide 8: Tropicana Journey
For personal use only TROPICANA JOURNEY 8
Slide 9: Tropicana – Key Points
TROPICANA – KEY POINTS For personal use only 1 Strategy remains unchanged Grade streaming is coming to an end, moving the constraint from the mill to the 2 mine 3 The Boston Shaker underground mine started up on time Stage 1 of the Havana cut backs to start in 2020 with decision points remaining 4 f
Slide 10: Safety
For personal use only SAFETY 10
Slide 11: AGA Zero Harm Safety Award
AGA ZERO HARM SAFETY AWARD For personal use only Richard McLeod and Ronan Oswald Wireless mobile column lifts Richard McLeod and David Merrilees Conveyor roller guard 11
Slide 12: Tropicana Fatigue Management
TROPICANA FATIGUE MANAGEMENT For personal use only • CAT Driver Safety System (DSS) installed in May 2018 • The DSS delivers information and alerts on two main types of events: • operator fatigue • operator distractions • 47% reduction in fatigue events post first interventions with identified indiv
Slide 13: Tropicana Safety Performance
TROPICANA SAFETY PERFORMANCE For personal use only 12-month rolling frequency rates 13
Slide 14: Tropicana – History of Delivery
TROPICANA – HISTORY OF DELIVERY For personal use only 14
Slide 15: Track Record of Continuous Improvement – Tropicana Production Profile
TRACK RECORD OF CONTINUOUS IMPROVEMENT – TROPICANA PRODUCTION PROFILE For personal use only • Exceeded feasibility study parameters • Consistently achieved or exceeded production and cost guidance • Mine life currently to 2029 15
Slide 16: Second Ball Mill
SECOND BALL MILL For personal use only • Ramp-up to design tonnage achieved within three shifts (960tph) • Design grind was achieved within one week • >97% availability achieved since commissioning • Concept to commissioning – September 2017 to November 2018 • Further optimisation work has shown pot
Slide 17: Boston Shaker Underground Mine
BOSTON SHAKER UNDERGROUND MINE For personal use only
Slide 18: Boston Shaker Summary
BOSTON SHAKER SUMMARY For personal use only Mining method : • Conventional mechanised mining • Underhand sublevel open stoping LOM physicals: • Stope production rate at approx 1.1Mtpa • 6.6Mt (2.7 Mt in Ore Reserve) • 3.84g/t (3.65 g/t in Ore Reserve) • 814koz (320 koz in Ore Reserve) Fleet: • 2 x j
Slide 19: Projects Have Delivered to Plan
PROJECTS HAVE DELIVERED TO PLAN 2014 2019 For personal use only 1 Accelerated mining ~55Mtpa ~96Mtpa On time; 2 Contruction of 2nd ball mill On budget 3 Increased mill throughput ~5.7Mtpa ~8.1Mtpa 4 Boston Shaker U/G study work First blast 8 May 2019 Havana 5 Distinct decision points for options Sta
Slide 20: Operational Excellence
OPERATIONAL EXCELLENCE For personal use only 20
Slide 21: Mining Open Pit – Operational Excellence
MINING OPEN PIT – OPERATIONAL EXCELLENCE Turning delay and standby into effective time For personal use only • 1st hour improvement - getting to maximum rate quickly • Short sharp pre-start (<4 minutes) • Hot-seating in pit • Re-designed go-line in close proximity to pit Delivered ~1Mt above 2018
Slide 22: Mining Open Pit – Operational Excellence
MINING OPEN PIT – OPERATIONAL EXCELLENCE For personal use only Turning delay and standby into effective time Truck Truck Productivity TUM Performance 95% 4,000 • Cycle freeze for “smoko” break 90% 3,500 • Keep trucks on the run and in cycle Delay and S'By Hours 3,000 85% 2,500 % of Time • Improve sa
Slide 23: Mining Open Pit – Operational Excellence
MINING OPEN PIT – OPERATIONAL EXCELLENCE For personal use only • Advancing Technology • Automated reporting embedded • Autonomous drilling PoC • Delta Energy with DynoNobel • DSS (driver safety system) • Improving the future Rehabilitation • New 600t class digger added to fleet • Tyre repair facilit
Slide 24: Open Pit – Mining Rates and Costs
OPEN PIT – MINING RATES AND COSTS For personal use only 24
Slide 25: Mine to Mill Reconciliation
MINE TO MILL RECONCILIATION For personal use only Mine call factor – mine delivered vs plant accounted head grade 15% % Difference mined vs mill head grade 10% 5% 0% -5% -10% -15% Jan-18 Feb-18 Mar-18 Apr-18 May-18 Jun-18 Jul-18 Aug-18 Sep-18 Oct-18 Nov-18 Dec-18 Jan-19 Feb-19 Mar-19 Apr-19 May-19 J
Slide 26: Reliability Improvement Mill Runtime (%)
RELIABILITY IMPROVEMENT MILL RUNTIME (%) For personal use only
Slide 27: Mill Throughput Improvement Journey
MILL THROUGHPUT IMPROVEMENT JOURNEY For personal use only Optimising capacity Plant debottlenecking & Matching plant to ore body capability Grind vs Recovery trade-off 8.5 +47.3% 8.1 8.0 0.7 7.5 Tonnes (Mtpa) 7.0 0.8 6.5 0.8 6.0 5.8 5.5 5.5 5.0 Original Plant design BP2014 2015 2016 - 2018 Ball Mill
Slide 28: Ongoing Plant Optimisation
ONGOING PLANT OPTIMISATION For personal use only • Design throughput at 960 tph (8.1 Mtpa) • New combined circuit achieved >1,000 tph at coarser grind New 6MW ball mill added • Continuous trade-off between throughput and recovery 1,029 1,030 93 1,019 1,030 94 1,020 91% 1,010 1,020 90% 90% 90% 92 89%
Slide 29: Processing and Maintenance Costs
PROCESSING AND MAINTENANCE COSTS For personal use only 29
Slide 30: Strategic Decision Points
STRATEGIC DECISION POINTS For personal use only 30
Slide 31: Long Island Evolution
LONG ISLAND EVOLUTION For personal use only Strip 2 Strip 1 BOSTON BOSTON SHAKER SHAKER 1 1 12 11 10 TROPICANA 9 8 7 6 5 2018 2019 4 3 2 Strip 1 1 Strip 2 Starter Strip 3 Pit HAVANA Strip 4 Strip 5 HAVANA SOUTH Havana South Ext 31
Slide 32: Key Decision Points
KEY DECISION POINTS The strategy has always included staged decision points… For personal use only Decision Staging Year 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 Point Havana South & Boston Shaker Currently being mined BP2018 Boston Shaker U/G Started May 8th on schedule BP2019 Havana
Slide 33: Exploration
For personal use only EXPLORATION 33
Slide 34: Exploration Potential
EXPLORATION POTENTIAL With the commencement of Boston Shaker Underground… For personal use only TGM Havana Tropicana Plant Boston Shaker Havana South ROM Stg 2 Stg 3 Stg 1 Elle / MWS TSF North part of Havana NE mine Flank Havana UG exploration South HGZ UG potential Havana exploration Deeps potentia
Slide 35: Exploration Potential
EXPLORATION POTENTIAL There is still potential to identify open pit resources and new discoveries… For personal use only Mineralisation Corridor Angel Eyes • Aircore and diamond drilling completed in Q2, assays pending 30 Km Tropicana Mineralisation Corridor 20 Km • Resource development for open pit
Slide 36: Conclusion
For personal use only CONCLUSION 36
Slide 37: Conclusion
CONCLUSION The Tropicana strategy has been consistent over an extended period of time… For personal use only 1 Strategy remains unchanged Grade streaming is coming to an end, moving the constraint 2 from the mill to the mine The Boston Shaker underground mine started up on time 3 and remains open at
Slide 38: Q&A
For personal use only Q&A 38